A Nonprofit Fills A Special Need In The Community

When considering the creation of a nonprofit organization, you must first identify the need you are seeking to fulfill in the community. By creating a needs assessment, you can begin to define how your organization will bridge the gap between the public and private sectors.

Exempt organizations fall into very specific areas in the eyes of the Internal Revenue Service (IRS) and are reserved solely for specified purposes such as religious, charitable, scientific, testing for public safety, literary, educational or other specified purposes. Always consult with an attorney or call the IRS directly.

Get In Where You Fit In

Research similar organizations in your city and other states. The competition for funding is fierce! Whether you are seeking to fund your project via public or private sources you need to stand out.

What makes your approach different?

Answering this one simple question may very well be the key to defining the type of nonprofit organization you want to start.

Depending on the size of your community, there may be several organizations already serving the niche you are considering.

At this point you need to determine if you are seeking to create an operational organization that provides direct services or if your nonprofit organization would better serve your community and cause through collaborations and philanthropic support by creating a nonprofit foundation.

Selecting Your Legal Team

Interview three (3) licensed Attorneys. Always consult a reputable Attorney regarding all legal matters relative to your organization. Contact your local bar association to help you identify firms that work specifically in the area or industry you are looking to serve.

In the State of Nevada, the Bar Association offers a referral service. They will help match you to three firms that work in your area.

Attorneys participating in the referral program offer an initial consultation for a very nominal fee. To learn more about this program in Nevada visit. https://nvbar.org for all specific details. Similar programs exist throughout the country and can be easily found with a simple internet search.

Accounting

A nonprofit is a business! To approach this endeavor with any other mindset is a recipe for only disaster.

Interview a minimum of (3) three Certified Public Accountants. It’s important to select a CPA that understands the unique needs of a nonprofit organization. Not only will they be maintaining your internal financial records, they are largely the key to ensuring the good standing of your organization and the continuation of your nonprofit status.

The NASBA( National Association of State Boards of Accountants) https://nasba.org/stateboards/ is an ideal place to begin your search. In the State of Nevada, you can consult with the Nevada Board of Accountancy: https://www.nvaccountantcy.com.

Create A Business Plan

All business nonprofits included need a plan.

A well-crafted business plan will be one of the most used tools throughout the life of your nonprofit.

To get started there are many resources, templates, and samples online to get you started. Remember, these are intended to guide you through the process. Your business plan should be unique and accurately identify and describe your organization and its financial feasibility.

The three main purposes of your business plan are to outline a growth strategy, determine your financial needs and to attract donors and/or investors.